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Two freehold sites going en bloc

24 Apr, 2018

PARK HOUSE in Orchard and St Michael's Condominium in Serangoon have joined the collective sale frenzy with guide prices of S$308 million and S$112 million respectively.

The S$308 million reflects a land rate of approximately S$2,387 per sq ft per plot ratio, or S$2,170 per sq ft per plot ratio after taking into consideration the 10 per cent bonus gross floor area allowed for balconies.

Owners of Park House's 56 apartments, which are approximately 1,571 sq ft each, will receive at least S$5 million, while owners at the four shops, at about 1,528 sq ft each, will receive at least S$6.65 million, said marketing agent CBRE in a statement.

The 46,084 sq ft freehold site has an allowable plot ratio of 2.8. Development charges are not payable as the baseline plot ratio is equivalent to about 3.66, CBRE said. Located at the junction of Orchard Boulevard and Tomlinson Road, Park House is close to malls such as Paragon, ION Orchard, The St Regis Hotel and Four Seasons Hotel, as well as the nearby Camden Medical Centre and Singapore Botanic Gardens. It was completed about 50 years ago.

Jeremy Lake, managing director at capital markets at CBRE, said he expects at least eight to 10 tender bids from developers both based here and overseas in countries such as Hong Kong, Malaysia and China.

"In the last few months the luxury residential market has come to life and developers are actively looking to buy prime sites and have been asking us if we have any sites in the pipeline," he said. The tender will close at 3pm on May 31.

Separately, the freehold, 60-unit St Michael's Condominium off Serangoon Road has been launched for a collective sale on April 24. It is expected to fetch S$112 million with no development charge payable due to its high baseline GFA, said marketing agent Teakhwa Real Estate.

Including a 10 per cent bonus balcony, which would raise the proposed plot ratio to 3.08, the land price would be about S$1,072.1 psf ppr. The tender will close on May 23 at 3pm.

Adapted from The Business Times, Apr 24, 2018.